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$TTCF MEGA-THREAD ABOUT TATTOED CHEF
This company has my full attention at the moment! I Will keep digging deep the next couples of weeks
Always apricate a comment, retweet, and dialogue about these threads
Hope you are ready!
This company has my full attention at the moment! I Will keep digging deep the next couples of weeks
Always apricate a comment, retweet, and dialogue about these threads
Hope you are ready!
1/x Disclaimer
This is a company which split people, so the basis for data; Fillings, interviews/investor days transcribes, all IR-material, sector analysis, etc
As always: This is a company summary, not a recommendation. Never any opinion about valuation > That’s up to you.
This is a company which split people, so the basis for data; Fillings, interviews/investor days transcribes, all IR-material, sector analysis, etc
As always: This is a company summary, not a recommendation. Never any opinion about valuation > That’s up to you.
2/ What is $TTCF?
Tattooed Chef is a leading plant-based food company offering a broad portfolio of innovative and sustainably sourced plant-based foods.
Founded in 2009
The brand “Tattooed Chef” is launched in 2017
Founderled company
+400 employees
Tattooed Chef is a leading plant-based food company offering a broad portfolio of innovative and sustainably sourced plant-based foods.
Founded in 2009 The brand “Tattooed Chef” is launched in 2017 Founderled company +400 employees
3/x Vision
"..Is a leading plant-based food company offering a broad portfolio of innovative and sustainably sourced plant-based foods.. which are available in the frozen food sections of leading national retail food stores.. as well as on Tattooed Chef’s e-commerce site."
"..Is a leading plant-based food company offering a broad portfolio of innovative and sustainably sourced plant-based foods.. which are available in the frozen food sections of leading national retail food stores.. as well as on Tattooed Chef’s e-commerce site."
4/x Business
Tattooed Chef controls the production cycle from beginning to end, with locations in Italy and California.
Sells products through 4,272 stores and clubs
Has 23,000 Points of Distribution
Relatively new e-commerce site (launched in September 2020)
Tattooed Chef controls the production cycle from beginning to end, with locations in Italy and California. Sells products through 4,272 stores and clubs Has 23,000 Points of Distribution Relatively new e-commerce site (launched in September 2020)
5/x Distribution
Has 23,000 Points of Distribution included some of the US's biggest stores (and now the UK).
Distribution points went gone up 155% in 2020 from 2019. In 2020 there was, the target for 2021 is 65.000 points (182% YoY)
Has 23,000 Points of Distribution included some of the US's biggest stores (and now the UK).
Distribution points went gone up 155% in 2020 from 2019. In 2020 there was, the target for 2021 is 65.000 points (182% YoY)
6/x Current Market
Market for U.S frozen retail sales is 55.2bn, Of which Tattooed Chefs operates on 33.9bn.
The Number of consumers who say convenience had a significant impact on their food purchase has grown from 49% in 2017 to 57% in 2019 (must be accelerated much by Covid)
Market for U.S frozen retail sales is 55.2bn, Of which Tattooed Chefs operates on 33.9bn.
The Number of consumers who say convenience had a significant impact on their food purchase has grown from 49% in 2017 to 57% in 2019 (must be accelerated much by Covid)
7/x Megatrend
Growth in the frozen food category has been primarily driven by recent product innovation as a response to increased demand for healthier alternatives and convenient options. Plant-based pizzas, pasta, and meals are significant growth drivers.
Growth in the frozen food category has been primarily driven by recent product innovation as a response to increased demand for healthier alternatives and convenient options. Plant-based pizzas, pasta, and meals are significant growth drivers.
8/x Megatrend
Millennials and Gen Zs are gravitating towards frozen food sections due to convenience for fresher, great-tasting, and unique plant-based foods.
This is still at the start of the megatrend, so it a long-term play. No doubt.
Millennials and Gen Zs are gravitating towards frozen food sections due to convenience for fresher, great-tasting, and unique plant-based foods.
This is still at the start of the megatrend, so it a long-term play. No doubt.
9/ Q3 2020
Revenue was a record $41.0 million, a 65% increase compared to $24.8 million in the prior-year period; Tattooed Chef branded product revenue was a record $22.6 million, an increase of 288% compared to $5.8 million in the prior-year period.
Revenue was a record $41.0 million, a 65% increase compared to $24.8 million in the prior-year period; Tattooed Chef branded product revenue was a record $22.6 million, an increase of 288% compared to $5.8 million in the prior-year period.
10/ First 9 month in 2020
Revenue was $108.9 million, an 87% increase compared to $58.1 million in the prior-year period.
Branded products went from $9,5M in Q-1-Q3 2019 to $60,7M in Q1-Q3 2020 – A increase of 640% YoY (Achieved with no investment in Marketing and Brand).
Revenue was $108.9 million, an 87% increase compared to $58.1 million in the prior-year period.
Branded products went from $9,5M in Q-1-Q3 2019 to $60,7M in Q1-Q3 2020 – A increase of 640% YoY (Achieved with no investment in Marketing and Brand).
10/x Q3
Adjusted EBITDA was $10.6 million, or 9.7% of net revenue, compared to $4.7 million, or 8.2% of net revenue, in the prior-year period.
Gross profit was $3.8 million for the three months ended compared to $4.5 million for the three months ended September 30, 2019.
Adjusted EBITDA was $10.6 million, or 9.7% of net revenue, compared to $4.7 million, or 8.2% of net revenue, in the prior-year period.
Gross profit was $3.8 million for the three months ended compared to $4.5 million for the three months ended September 30, 2019.
11/x Q3
Gross margin in the three months ended September 30, 2020 was 9.2% compared to 18.2% in the three months ended September 30, 2019. The decline in both gross profit and gross margin was primarily due to a $1.4 million program to promote.
Gross margin in the three months ended September 30, 2020 was 9.2% compared to 18.2% in the three months ended September 30, 2019. The decline in both gross profit and gross margin was primarily due to a $1.4 million program to promote.
11/x Q3
Gross margin in the three months ended September 30, 2020, was 9.2% compared to 18.2% in the three months ended September 30, 2019. The decline in both gross profit and gross margin was primarily due to a $1.4 million program to promote.
$200M+ on the cash balance.
Gross margin in the three months ended September 30, 2020, was 9.2% compared to 18.2% in the three months ended September 30, 2019. The decline in both gross profit and gross margin was primarily due to a $1.4 million program to promote.
$200M+ on the cash balance.
12/x Outlook
’21 = $222M = 113%
’22 = $300M = 35%
’23 = 500M = 67%
From $47M in 2018 > $222M 2021E > 68% CAGR
Despite significant investment to fuel their continued growth, they anticipate generating $8-10M in adjusted EBITDA 2021.
’21 = $222M = 113%
’22 = $300M = 35%
’23 = 500M = 67%
From $47M in 2018 > $222M 2021E > 68% CAGR
Despite significant investment to fuel their continued growth, they anticipate generating $8-10M in adjusted EBITDA 2021.
13/x Ownership
Sam (CEO) + family: 50%
Public shareholders: 31%
Others; 19%
Short interest is around 4,1%
Only 8,14% are held by Institutions. Will probably see a raise here?
Sam (CEO) + family: 50% Public shareholders: 31% Others; 19% Short interest is around 4,1%
Only 8,14% are held by Institutions. Will probably see a raise here?
14/x Management
I love when a company is founder-led, but I am not sure that I love most of the family are on the team.
CEO: 35y experience in this field. On interviews: Very skilled, focused on innovation and development. Very “no bullshit”-type – I love that.
I like it.
I love when a company is founder-led, but I am not sure that I love most of the family are on the team.
CEO: 35y experience in this field. On interviews: Very skilled, focused on innovation and development. Very “no bullshit”-type – I love that.
I like it.
15/x E-com
E-commerce got launched 26. Oct. 2020 (Looking forward to seeing this in Q4-result!)
from CEO: ” Since launching our e-commerce site two weeks ago, the reaction in the marketplace has been overwhelmingly positive, and we are thrilled with the initial success. ”
E-commerce got launched 26. Oct. 2020 (Looking forward to seeing this in Q4-result!)
from CEO: ” Since launching our e-commerce site two weeks ago, the reaction in the marketplace has been overwhelmingly positive, and we are thrilled with the initial success. ”
16/x Marketing
Never done a marketing-campaign before (crazy!). They anticipate spending approximately $15 million on this starting in 2021.
NikroC marketing, which led the 360-degree campaign, did the marketing for HelloFresh and doubled their sales.
Never done a marketing-campaign before (crazy!). They anticipate spending approximately $15 million on this starting in 2021.
NikroC marketing, which led the 360-degree campaign, did the marketing for HelloFresh and doubled their sales.
17/x Future
Doubled capacity in 2020 and capacity 2021 to double from that
From 38 own products to 62 products in 2021
Expansion to Europe and Mexico in 2021
Doubled capacity in 2020 and capacity 2021 to double from that From 38 own products to 62 products in 2021 Expansion to Europe and Mexico in 2021
18/x Future
“We also plan on entering the $12.6 billion dessert segment with many delicious plant-based offerings. Also, our existing footprint in Italy will allow us to expand globally and compete in the $380 billion global frozen food market."
“We also plan on entering the $12.6 billion dessert segment with many delicious plant-based offerings. Also, our existing footprint in Italy will allow us to expand globally and compete in the $380 billion global frozen food market."
19/x Possible acquisitions?
Sam Galutti, Tattoed Chefs CEO: “our cash balance is well over $200 million, which provides us greater financial flexibility and opportunities to invest in strategic growth initiatives.”
Sam Galutti, Tattoed Chefs CEO: “our cash balance is well over $200 million, which provides us greater financial flexibility and opportunities to invest in strategic growth initiatives.”
20/x Bull
Really great numbers without ant spend on marketing and personal. They have dedicated $15M towards this, gone from a 2-personal sales team (CEO+COO) to complete marketing, e-com, and sales team.
Balance sheet is dedicated to creating a brand. This is so important.
Really great numbers without ant spend on marketing and personal. They have dedicated $15M towards this, gone from a 2-personal sales team (CEO+COO) to complete marketing, e-com, and sales team.
Balance sheet is dedicated to creating a brand. This is so important.
21/x Bull
The CEO says: Going from private to public will create a shift from financial stability toward heavily growth-targets the next 2-3y (money from the balance sheet).
Will probably show some real massive growth numbers and scale over the next couple of years.
The CEO says: Going from private to public will create a shift from financial stability toward heavily growth-targets the next 2-3y (money from the balance sheet).
Will probably show some real massive growth numbers and scale over the next couple of years.
22/x Bull
Want to scale towards Mexico and Europe in 21’, love that (based on the European production is now 100% shipped to the US-market. Better they expand to Europe).
Want to scale towards Mexico and Europe in 21’, love that (based on the European production is now 100% shipped to the US-market. Better they expand to Europe).
23/x Bull
Financials have been heavily affected by investment in facilities, we will see that again in 21’. But the company has confirmed they shift the mindset from “building for today” towards “building for tomorrows scale”.
Classic scale = Investment now, harvest later.
Financials have been heavily affected by investment in facilities, we will see that again in 21’. But the company has confirmed they shift the mindset from “building for today” towards “building for tomorrows scale”.
Classic scale = Investment now, harvest later.
24/x Bear
At the moment, when you select Beyond Meat, Tattoed Chef, or others, you still pay a premium for the product vs “old school” food selection. That is always a problem for scale.
At the moment, when you select Beyond Meat, Tattoed Chef, or others, you still pay a premium for the product vs “old school” food selection. That is always a problem for scale.
25/ Bear
It is a little bit like Tesla again the older companies – What will happen if the older companies (meat-based) change or expand to plant-based meat? We do not know, but it is something we need to track and keep an eye on.
It is a little bit like Tesla again the older companies – What will happen if the older companies (meat-based) change or expand to plant-based meat? We do not know, but it is something we need to track and keep an eye on.
26/x Bear
They get some heat to be “frozen based” – Beyond Meat and others have gone from the frozen-section to the meat-section in stores, which validate the competitors' product and it is easier to change your mind when you have the alternatives to meat next to it.
They get some heat to be “frozen based” – Beyond Meat and others have gone from the frozen-section to the meat-section in stores, which validate the competitors' product and it is easier to change your mind when you have the alternatives to meat next to it.
27x If you want some interviews, etc.
https://innovestor.substack.com/p/tattooed-chef-overview
https://www.fool.com/podcasts/industry-focus/2020-11-04-wildcard-the-tattooed-chef-or
https://www.globenewswire.com/news-release/2020/12/08/2141770/0/en/Tattooed-Chef-Newest-Innovation-Features-Plant-Based-Meat-Alternatives.html
https://ir.tattooedchef.com/static-files/76eaf800-f6b0-4c43-aa72-3f098d6181e3
https://innovestor.substack.com/p/tattooed-chef-overview
https://www.fool.com/podcasts/industry-focus/2020-11-04-wildcard-the-tattooed-chef-or
https://www.globenewswire.com/news-release/2020/12/08/2141770/0/en/Tattooed-Chef-Newest-Innovation-Features-Plant-Based-Meat-Alternatives.html
https://ir.tattooedchef.com/static-files/76eaf800-f6b0-4c43-aa72-3f098d6181e3
28/ Own notes
They will keep the focus on their branded products. Sales will probably be pretty impressive (also because of their e-com, which only sells their own branded products).
They will keep the focus on their branded products. Sales will probably be pretty impressive (also because of their e-com, which only sells their own branded products).
29/ Own notes
They are probably going to do better than their target ($220M) for this year.
Statement for CEO under investor day: “We're confident that we will continue to grow beyond the $222 million we've already guided to for 2021.”
They are probably going to do better than their target ($220M) for this year.
Statement for CEO under investor day: “We're confident that we will continue to grow beyond the $222 million we've already guided to for 2021.”
30/ Own notes
From CEO:
Q1 is always a great quarter because people try to be healthier, join a diet, or so on in Jan+feb.
Me:
It will be interesting to see how their marketing, new e-com, and balance sheet will get the most out of this. I am very positive about this.
From CEO:
Q1 is always a great quarter because people try to be healthier, join a diet, or so on in Jan+feb.
Me:
It will be interesting to see how their marketing, new e-com, and balance sheet will get the most out of this. I am very positive about this.
31/x Own notes
Many of the stores they have sold to have not been around in a long time. Some of them less in 2 months in 20’. What will happened when they have a whole calendar year?
Many of the stores they have sold to have not been around in a long time. Some of them less in 2 months in 20’. What will happened when they have a whole calendar year?
32/x Own notes
Despite their impressive growth, they have actually been minimal with their presence. In 20’ the big strategy was to demo in the stores, but because of Covid in has not been possible. If they have had that option, the numbers would probably be even more massive.
Despite their impressive growth, they have actually been minimal with their presence. In 20’ the big strategy was to demo in the stores, but because of Covid in has not been possible. If they have had that option, the numbers would probably be even more massive.
33/ Own notes
Depends on the development of Covid, this could also be a great sales trigger in 21’ (or if Covid continues = just postpone once again).
Depends on the development of Covid, this could also be a great sales trigger in 21’ (or if Covid continues = just postpone once again).
34/x Own notes
For me, this megatrend and how the sector will evolve (and who the winners will be) still very early in the process. I really like this company, but to say who will be the winner in the sector, no one knows, and I think this is very important to remember.
For me, this megatrend and how the sector will evolve (and who the winners will be) still very early in the process. I really like this company, but to say who will be the winner in the sector, no one knows, and I think this is very important to remember.
35/35
The is a lot of talk about valuation and so on. Note I never take a stand on the valuation or the stock price in these summaries. This is up to you to judge this. I will not have any comments on this. People are too different to make a statement here.
The is a lot of talk about valuation and so on. Note I never take a stand on the valuation or the stock price in these summaries. This is up to you to judge this. I will not have any comments on this. People are too different to make a statement here.
36/36 FINISH
I am into this one. How it will go, I do not know atm. I will follow the trends, competitors and see how the numbers will go
I HOPE YOU ENJOY THIS ONE! I hope it is worth a retweet or a like
I am into this one. How it will go, I do not know atm. I will follow the trends, competitors and see how the numbers will go
I HOPE YOU ENJOY THIS ONE! I hope it is worth a retweet or a like
